Record Labels
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Drew Baldridge, who earned a top 5 hit on Billboard’s Country Airplay chart with his independently-released song “She’s Somebody’s Daughter,” has partnered with BBR Music Group/BMG Nashville in releasing his new song, “Tough People,” which goes for radio adds Nov. 4 via Stoney Creek Records. Baldridge has also signed with Left | Right Management for representation. He […]
Following his 2023’s breakthrough album, Whitsitt Chapel, Jelly Roll has become a country superstar widely embraced for the former rapper’s confessional, salvation-seeking songs and his larger-than-life personality, as well as his redemption arc as a former convict.
As he began promoting and releasing songs from his follow up release, Oct. 11’s Beautifully Broken, Jelly Roll also made it very clear on social media that debuting at No. 1 on the Billboard 200 would be the realization of a dream. That dream came true this week, when the set entered atop the chart with 161,000 equivalent album units earned in the U.S. for the week ending Oct. 17, according to Luminate — the artist’s best week ever by units and the third-largest week, by units, for any country album in 2024.
The work began more than a year ago, as Jelly Roll began writing and recording songs for the new album. He worked closely with Katie Kerkhover, vp of A&R for Nashville-based BMG/BBR Music Group (which released the album in conjunction with Republic), whose own background as a musician helped inform her work with Jelly Roll. And her contributions to Beautifully Broken help earn Kerkhover the title of Billboard’s Executive of the Week.
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Here, Kerkhover discusses the making of the album from the “vision” Jelly Roll took into its creation, his sense of purpose in recording every song and the intention behind picking his duet partners from several different genres, as well as the non-stop promotion efforts that brought it over the line.
Beautifully Broken debuted at No. 1, something that Jelly Roll made clear was his goal. What decisions did you make in the making of the album that you felt would increase its chances for a No. 1 debut?
Jelly has a very strong vision for the impact he wants to make with his music. It has a purpose. Every song he writes has a purpose. Making sure his heart and the gravity of his messages was the constant that was guiding everyone was critical in making the album. Encouraging those involved, who have their fingerprints on it with him, to bring that emotion out of their own contributions was vital. Making sure the production and mixes were mirroring Jelly’s emotions. He was creating until the absolute last moments, so having trust in each other when we were counting the hours on the final touches was also extremely important. Don’t forget, he was finishing this album while he was in the middle of tour.
This album was a joint project with Republic. What was the division of duties in terms of the A&R?
Jelly started working on this album in 2023. He had already defined a solid foundation and clear direction, so when Republic joined the team, we all knew what we were aiming at. There wasn’t so much a division of duties as more of how we work together to add the most value to Jelly. What strengths do we have separately and together to elevate his vision and hit his goals.
Was there a mission statement from the moment you started recording tracks for what Jelly Roll wanted the album to be?
There wasn’t any more of a mission statement than what you hear him continuously say, “I make real music, for real people, with real problems.” When we started to go through songs in 2023, we listened to every song he had written and focused on the ones with the strongest impact. Did we feel something? One of the things I admire most about Jelly is he always comes back to the purpose and to the why. “Why am I cutting this song? What purpose is it filling on the album and in the lives of others?”
Jelly Roll duets with a number of artists, country and otherwise, on Beautifully Broken, including Halsey, Keith Urban and Wiz Khalifa. How were his duet partners chosen and how does the diversity of the artists broaden the album’s appeal?
The collaborators were chosen by who Jelly felt the song would resonate with. Who would be the best person to add their talent and continue to elevate the song? As far as the broader appeal, Jelly is a huge music lover and that’s why you see so much diversity in his collaborators on this album. I think it’s only natural that the appeal is broadened because he creates without boundaries and, ultimately, the human factor is what connects all of us. Fun fact: he also knows more about the history of songs, artists and genres than anyone I’ve met, so his well of potential collaborators runs deep.
“I’m Not Okay” tackles mental health and is a Hot 100 hit for Jelly Roll. How has that song brought him a new audience?
We all have times we struggle and are not okay. The message of this song transcends genres and resonates deeply with listeners. Jelly has the courage to share his personal struggles through candid lyrics, revealing a vulnerability that really enables him to connect with a broader audience, including those who may not have been familiar with his earlier work.
There are several different configurations of Beautifully Broken, ranging from 14 to 28 tracks. How was the sequencing for each project decided to convey a cohesive work no matter what variation fans were buying?
We selected the initial 14 as the first collection for vinyl because he was still writing. The sequencing is tied together by the overarching message that Beautifully Broken is a reflection on his experiences with mental health and addiction, and the idea that winning comes from losing. The road to atonement has no shortcuts and there will be highs and lows along the way. It all began once he selected “Winning Streak” to be the opening track of the album.
Beautifully Broken achieves the third largest week for a country album in 2024, behind Beyoncé and Post Malone. What does that mean to Stoney Creek/BBR?
Jelly’s success speaks volumes about the incredible connection he shares with his audience. His fan base is broad and deeply passionate, showing up in full force for every project. This relationship helps fuel our growth as a team, pushing us to innovate and strategically add resources that make sense. Our collaboration with Republic on this project is one example.
But the real driving force behind this achievement is Jelly himself. The sheer amount of work he poured into creating and promoting this album is nothing short of mind blowing. For two months leading up to its release, Jelly didn’t have a single free minute. Every ounce of his energy was devoted to making this album the best it could be, and the results speak for themselves. His work ethic, paired with the passion of his fans, made this project a true success.
You come from a publishing background. How did that help you approach picking songs for this album?
I’ve had a long and extensive career as a touring musician, having played violin since the age of four. Before I turned 20, I was performing hundreds of shows a year with Nashville artists like Sara Evans and Billy Currington, playing at the biggest country festivals and stadiums.
What I set out to do was take my real-life musical experience and transform it into a tool to help songwriters and artists master their craft. A great example of that is from late 2020 when I joined BMG as a publishing A&R. One of the first things I did was bring in the incredibly talented songwriter/producer Austin Niveral, just as the label was signing Jelly Roll. I immediately saw the potential for the two to collaborate, [then-BMG Nashville president] Jon Loba recognized my strengths and ultimately appointed me to lead A&R for the label side. As we know, Jelly and Austin would go on to write the massive hit “Need A Favor” from Whitsitt Chapel, and they continued their partnership with Beautifully Broken, setting the tone for the album with “Winning Streak.”
The pop duo LANY released their first four albums on a major label. But when they completed their contract, they decided to hunt for a different kind of business partner, one that would give them more control over their operations. “Autonomy is the future,” manager Rupert Lincoln told Billboard. LANY ultimately chose to work with Stem, a distribution company.
For decades, major labels demanded long-term contracts, obtaining multiple albums from the acts they signed, and made most of the money from those acts’ sales. The balance of power has shifted dramatically in the modern music industry, however, and so have artist contracts. More and more acts want distribution deals — short-term agreements where they retain ownership of their work and keep the majority of the income their music generates.
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As these have become more desirable, competition for high-performing artists seeking distribution deals has gotten fierce, according to a pitch deck Stem has sent to potential investors, which was obtained by Billboard. Stem “has lost numerous deals historically as it wasn’t able to be competitive with advances,” the deck states.
Other companies have also seen prices rise. “It is a much more competitive market” than it used to be, says Jorge Brea, founder and CEO of the distributor Symphonic. “All distros have to be well-funded to ensure they can put up money for deals.”
Historically, digital distributors didn’t help artists much with marketing or radio promotion; they were basically tech companies that made music widely available on places like iTunes and Spotify in exchange for a small percentage of sales. These low-overhead operations were a world away from an old-school major label, which had lots of manpower to promote artists around the world.
But ironically, as the distribution landscape has become sexier — “There have been more entrants,” Brea notes — many of these companies are starting to resemble labels. Increasingly, they try to differentiate themselves from rivals by offering bigger up-front payments to artists and more label-like services: assistance with digital marketing, playlist pitching to streaming services, or radio promotion.
Concerns about up-front payments and services feature prominently in Stem’s pitch deck. The company estimates that it lost out on $45.6 million dollars worth of business in 2022: $19.2 million in scenarios where Stem couldn’t meet an artist’s ideal “check size,” and $26.4 million in situations where it couldn’t compete on “check size + other services (Intn’l, radio).”
By Stem’s count, the number of lost business opportunities ballooned in 2023, tripling to $134 million. (If accurate, this number helps demonstrate how popular distribution deals have become recently.) “We’re tracking all the lost deals that we were actually in the conversation on,” says Kristin Graziani, Stem’s president.
The pitch deck zooms in on two artists in particular whom Stem lost to rivals: Aaron May, a rapper with a laid-back delivery who took an advance of $2.2 million elsewhere, according to the deck; and 6arelyhuman, an electronic act specializing in glitchy, thumping tracks who took an advance of $1 million. (A source close to May contends the number cited in the pitch deck isn’t accurate.) In both these cases, Stem couldn’t match the final check, though the presentation doesn’t say whether those artists also wanted services that the company couldn’t provide — or picked a rival distribution outfit for another reason altogether.
In July 2023, Stem announced that it had set up a $250 million credit facility from Victory Park Capital to provide artists with advances. But “some of the dynamics of our deal with Victory Park were still a little bit constraining in terms of allowing us to win the type of deals that we were seeing,” says Stem CEO Milana Rabkin-Lewis. “There are many other types of capital out there that have less restrictions,” she continues, “and those are the conversations we’re having” now.
Other companies are doing the same — Billboard reported in August that at least half a dozen independent music distributors that have been fundraising or exploring a sale. That said, investors may be wary of providing some of these businesses with additional money to help them win bidding wars over talent, according to Erik Gordon, clinical assistant professor at the University of Michigan Ross School of Business.
Stem’s adjusted EBITDA — earnings before interest, taxes, depreciation, and amortization — was -$5.2 million in 2022 and -$4 million in 2023, according to the company’s presentation; it’s projected to be -$3.8 million in 2024. In Gordon’s view, “investors are likely to take three consecutive years of EBITDA that is negative, even after management adjusts it, as a sign of problems.”
Rabkin-Lewis says that, although “the distribution business is profitable, the overall Stem company is not because we’ve invested a lot into Tone, which is a newer product.” (The adjusted EBITDA for the distribution part of Stem’s business was -$1.3 million in 2022 and $400,000 in 2023, according to the deck.) “We’ve been prioritizing gross revenue growth,” Rabkin-Lewis adds. The deck indicates that gross revenue rose by a little more than 4%, from nearly $88 million in 2023 to a projected number around $92 million in 2024.
Meanwhile, distribution deals for proven artists continue to get more expensive. “A lot of companies are throwing out cash-heavy distro deals that we have never seen before,” says Karl Fowlkes, an entertainment attorney. At Symphonic, Brea has watched some of his competitors enter into agreements he believes are “ridiculous.” “We’re aggressive when going after deals,” he adds, “but not to the point where it’s not going to make [economic] sense.”
Distributors have to be especially careful when it comes to chasing expensive deals, because the short-term nature of their contracts gives them little time to make their money back. And successful artists often decamp for a rival company, lured away by a bigger check or the promise of a more powerful services division that can propel them to even greater heights. Brent Faiyaz, who worked with Stem among other companies in the past, subsequently partnered with UnitedMasters, for example.
On October 4, Stem updated its terms of service to say that it is guaranteed a five-year license on any new music uploaded through its system. (As always, artists with more leverage can negotiate a shorter term.) This change raised eyebrows in some corners of the music industry, because the ability for artists to disentangle relatively quickly is a big part of why they choose to work with companies like Stem. “We feel like we’re finally at a point, from a services perspective, where we can demand longer licenses,” Graziani says. A five-year term is more in line with what a major-label-owned distributor like AWAL would ask for in negotiations with an artist.
This points to another lane for competition — not just check size and services offered, but license length. Independent distribution companies face an ongoing challenge: It can be hard to prevent artists from heading elsewhere without offering agreements that look more like the ones handed out in the major-label ecosystems.
“The supply of distribution is now almost infinite — you can get it anywhere,” says Emmanuel Zunz, founder of the independent label OneRPM. “In order to make money in distribution, you have to create value elsewhere. If you’re unable to create additional value, you get stuck.”
Warner Music Group announced the launch of Warner Music Africa Francophone (WMAFR) on Thursday (Oct. 24).
The new venture will “spotlight incredible talent from Francophone Africa,” co-director Yoann Chapalain said in a statement. “It aims to connect diverse sounds and regions, elevate releases for maximum success, and expand the music’s reach globally.”
The launch comes at a time when demand for French-language music is growing. “Since 2019, French-language music streams have surged by 94%” on Spotify, the streaming service noted in a blog post in September.
“All regions of the world are embracing the richness and diversity of the French-language music scene,” according to Jeremy Erlich, head of music content at Spotify. “There’s been a sharp rise in the number of French-language music listeners on Spotify.”
Warner Music Africa Francophone will be a collaboration between Warner Music Africa, Warner Music France, and Africori, a distribution company. WMG previously announced that it acquired a majority stake in Africori in 2022.
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The company was working with around 7,000 artists at the time. “African music is booming all around the world and some of our artists are right at the heart of the explosion,” Yoel Kenan, CEO of Africori, said in 2022. “Through our partnership, Warner Music has proven that it is the perfect home for Africori and our artists going forward. I’m looking forward to continuing to work with them as we break more artists on a global scale.”
WMAFR will be led by Chapalain along with Marc-André Niang. Chapalain also serves as A&R Manager at Africori, and Niang continues on as A&R director, French-speaking African repertoire at WM France.
“It’s important for us to be able to create new synergies for the development and structure of the Francophone market in Africa,” Niang said in a statement. “While the region is steeped in both culture and talent, the ecosystem faces challenges. Our team will connect creatives and help shape the environment to drive cross-cultural success.”
Simon Robson, WMG’s president of recorded music for Europe, Middle East, and Africa, likened WMAFR to 91 North, a joint venture between Warner Music Canada and Warner Music India that launched in 2023.
“There’s a strong cultural trade route between France and West Africa,” Robson added. “WM Africa Francophone will help us support the artists in that space.”
Two years after she became the first and only woman to debut at No. 1 on Billboard‘s Hot R&B/HipHop Songs as a producer this century — thanks to Nicki Minaj‘s Rick James-indebted “Super Freaky Girl” — Malibu Babie has found a new home.
On Thursday (Oct. 24), ONErpm announced that the artist/producer signed with the distribution and marketing company; “Baddie Bakery,” her new Flyana Boss-assisted single, is due Friday (Oct. 25).
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“Malibu Babie’s producer accolades speak for themselves and it’s time for the world to recognize her as an artist,” said Alex Ziabko, denior director of A&R at ONErpm, in a statement. “Malibu reminds us all to have fun from time to time. I’m thrilled to welcome such a strong, creative, forward-thinking artist to ONErpm.”
“I’m so excited to be releasing music with the ONErpm team” added Malibu Babie. “Alex & the incredible team of women he’s brought on to support me — Jenna LoMonaco, Julia McLeod, & Casey Childers, immediately understood my artistic vision and unique path as a producer/artist. I’m thrilled to bring my music to life with an innovative team who takes my mission to trailblaze as seriously as I do!”
In addition to her forthcoming new single with Flyana Boss — the hip-hop duo behind the 2023 hit “You Wish” — Malibu Babie is also prepping a new mixtape for 2025. Beginning Oct. 31, she will join Qveen Herby‘s The Alchemist tour as a supporting act. The trek will commence at The Novo in Los Angeles, visit major cities such as Toronto and New York, and conclude at The Fillmore Miami Beach in Miami on Nov. 23.
Recently, Malibu Babie has landed placements with Katy Perry and Kim Petras (“Gorgeous”), as well as official remixes of tracks from Sia and Kylie Minogue (“Dance Alone”) and Shania Twain (“Giddy Up!”). She released her debut mixtape, Malibu SZN, Vol. 1, in November 2022.
Hailing from Olympia, Wash., Malibu Babie graduated from Vanderbilt University, where she made an eleventh-hour decision during her senior year to ditch her law school aspirations and go all in on music. After six years of toiling in the industry — including a stint as a studio intern for a company called ZMG in Nashville — she finally struck gold with “Super Freaky Girl.”
Minaj’s 2022 smash debuted atop the Billboard Hot 100 chart dated Aug. 27, 2022, becoming Minaj’s first unaccompanied No. 1 hit on the chart. The “Super Freak”-sampling track also helped Minaj become the first solo female rapper to debut at No. 1 on the Hot 100 since Lauryn Hill did so with “Doo Wop (That Thing)” in 1998. The same week “Super Freaky Girl” reigned as America’s most-consumed song, Malibu Babie notched a second Hot 100 entry, this time with Megan Thee Stallion‘s “Her,” a house-inflected track from Megan’s Traumazine LP. That track, whose music video earned three nods at the 2023 MTV Video Music Awards, peaked at No. 62 on the Hot 100.
The Core Records and Capitol Music Group have signed Hannah McFarland to their joint venture; it is the first signing announced by the two entities. McFarland’s single, “Hey Highway,” out Friday (Oct. 25), will be the first official release from the new label. “Signing with The Core Records and Capitol Music Group feels like the […]
Universal Music Publishing Group (UMPG) has promoted Jennifer Knoepfle to Head of U.S. A&R, marking a major leadership shift within the company.
The announcement was made by UMPG Chairman & CEO Jody Gerson on Oct. 22, with Knoepfle reporting directly to Gerson. In her new role, Knoepfle will oversee A&R operations across the U.S., while continuing to hold her position as Executive Vice President of the company.
In this expanded role, Knoepfle is tasked with nurturing UMPG’s creative culture and driving talent development by identifying, signing, and fostering new songwriters, producers, and artists.
Her efforts will extend to legacy artists as well, ensuring that UMPG remains a leader in catalog development and contemporary hitmaking. She will be based at the company’s Santa Monica headquarters.
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“I am overjoyed to promote Jenn to this much-deserved position as Head of U.S A&R. She embodies everything a creative music executive should be; she possesses the ear to identify the best artists and writers—often early in their careers—and knows how to support, nurture and amplify their talents. Additionally, she is a thoughtful leader and mentor to our A&R team. I couldn’t be more excited to continue working with Jenn for years to come!”
As part of her expanded duties, Knoepfle has also appointed three executives to key positions within the U.S. A&R team. Daniella Rasho has been promoted to Director of Global A&R, while Deeba Abrishamchi has been named Director of U.S. A&R. Hollie Boston has also joined the company as Director of U.S. A&R.
Knoepfle commented, “Every day, I am humbled to work alongside some of the most revered musical talent in the world. I am deeply grateful for the opportunity to expand my role at UMPG, where I have the privilege of working with one of the very best executives in the business, Jody Gerson. I couldn’t be more excited to take on this new chapter, growing our incredible A&R team and working with them to pursue my greatest passion: discovering and nurturing talent, which remains the lifeblood of our industry.”
Knoepfle joined UMPG in 2022 as EVP and Co-Head of U.S. A&R. Since then, she has signed a diverse roster of talent, including notable songwriters and artists like Jack Antonoff, Lord Huron, Maggie Rogers, and Wallows. Prior to UMPG, she spent 13 years at Sony Music Publishing, where she worked with artists such as Leon Bridges, Tate McRae, and Noah Kahan. Earlier in her career, she served as senior director at ASCAP, where she brought major talents like The Killers and Greg Kurstin to the organization.
UMPG continues to build its global presence with 48 offices across 40 countries, representing a vast catalog of iconic songs and hitmakers, with some of the artists represented including Adele, Billie Eilish, Bob Dylan, and The Weeknd.
Neon Gold and Avenue A Records have joined together to create Futures Music Group, a tech-forward collective of indie labels with an artist-first mentality.
Distributed through Virgin, Futures was co-founded by Neon Gold’s Derek Davies (Charli XCX, Tove Lo, Marina & The Diamonds, Passion Pit, Matt Maeson) and Avenue A’s Dave Wallace (Barns Courtney, Blossoms, Palace, Self Esteem) in early 2024. When the label group’s first release as Futures, “Home” by Good Neighbours, quickly went viral in January, the song quickly put the band on the map and served as a proof-of-concept for the Futures model. Perhaps the biggest debut single by any artist this year, “Home” was certified platinum in less than nine months.
The Futures roster also includes Phantogram, The Knocks, Barns Courtney, Palace and Mt. Joy, the latter of which was signed through a joint venture with the band’s own Bloom Field Records. (Good Neighbours first EP, including “Home,” are also through Futures until the band’s deal with Capitol/Polydor kicks in January 2025).
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Over time, Futures Music Group will grow to include more indie labels (and artists) under its umbrella. It also intends to build an internal team for digital marketing, sync licensing, sales, content production and more that can be shared between the individual labels.
At Futures, artists are signed to license-based deals, keeping master ownership in the artists’ hands, and the royalty split is kept equitable between the label and artist. In some instances, the split moves further into the artist’s favor after certain profit thresholds are met. This allows for what Davies calls “maximum incentive alignment” between both parties, and it rewards the artist for success.
The deal terms and options are “shorter and less onerous than most competitors,” Davies adds. “Our thing is if we do a great job, then we hope people will just keep rolling through and working with us,” says Wallace. “Keeping artists happy is the name of the game. We don’t want to work with an artist who is only working with us because of a contract. There are not many successful record campaigns that come out of a relationship where the artist is unhappy,” adds Davies.
The company also wants to do right by songwriters. The label group has pledged from now on to give points on every master to any non-producing and non-performing songwriter from the label’s share. (Exact deal points for this are handled on a case-by-case basis).
Along with their commitment to artists, Davies and Wallace of Futures have also spent the last few years studying and investing in how new technology will disrupt the music business. Davies, for his part, co-founded the start-up Medallion, which helped artists like Santigold, Greta Van Fleet, Tycho and more build and own direct relationships with their most passionate fans using web3 technology. The co-founders have also been strategic investors in Big Effect, a digital marketing platform founded by Spotify and UMG alum Mike Biggane, and Notes.fm, a royalty management platform from Stem co-founder Tim Luckow.
“We believe the future of the music industry has never been brighter for artists and the independent sector,” says Davies. “The industry has reached what we believe to be the largest inflection point in the history of the label system, as we are moving into a new music economy that is rightly trending towards artist ownership. We believe there’s a meaningful opportunity for a well-financed and resourced label group with a proven track record to deliver major results for artists on indie terms, which is what we’ve set out to build with Futures.”
The founding team includes: Davies (co-CEO), Wallace (co-CEO), Sarah Kesselman (CMO, general manager), Nicky Berger (COO) and Jeff Lin (CFO).
Ricardo Arjona, the Guatemalan singer/songwriter who has defined Latin music as much for his signature songwriting permeated in storytelling as for his longstanding history of sell-out tours, has signed an exclusive, worldwide distribution deal with Interscope Capitol Labels Group.
Under the new agreement—signed via his label, Metamorfosis, which he created in 2011—Arjona’s vast catalog of nearly 300 songs, plus his future releases, will fall under Interscope Capitol Labels Group, Billboard can reveal. Likewise, Arjona will now be part of the label’s roster.
Arjona’s move to Interscope Capitol follows stints with Sony Music, which was his longtime label and most recently distributed him, and Warner Music.
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The partnership with Interscope Capitol will launch with Arjona’s new studio album, SECO, slated for release in early 2025. The album was written during a difficult time for Arjona, when he was wheelchair bound after a back injury at the end of his tour last December and thought he would no longer be able to perform.
In that period, he wrote “Todo termina,” (Everything Ends). The song is one of three singles from SECO that will be released in November; the other two are “Despacio que hay prisa” and “Todo termina”. Plans call for two additional singles to be released in December, before Arjona kicks off 2025 with a SECO residency in New York and his native Guatemala.
Arjona, whose chart history dates back 30 years, to 1994, has placed five No. 1s and 18 top 10s on Billboard’s Hot Latin Songs chart. His last entry on the chart was in 2016. On Top Latin Albums, he’s placed five No. 1s and 15 top 10s. His latest album, released in 2022, peaked at No. 46 on the chart.
But Arjona’s musical output continues to be prolific and his touring record continues to be extraordinary. Last year alone, he landed at No. 11 on Billboard’s year-end Latin touring chart, selling 224,341 tickets and grossing $27.3 million, according to Billboard Boxscore. He is currently the No. 15 highest-grossing Latin touring act of all time, according to Boxscore.
“I speak on behalf of the entire Metamorfosis team when I say we are deeply motivated and profoundly appreciative to collaborate with Interscope Capitol Labels Group,” comments Ricardo Arjona Torres, who is Arjona’s son and runs Metamorfosis. “This resilient team not only showcases a curated and dynamic array of artists but also truly understands their vision.”
“We are incredibly honored to welcome Ricardo Arjona to the Interscope Capitol family. As one of the most iconic artists in the Spanish-speaking world, Ricardo has shaped the musical landscape in ways that transcend generations. We are committed to promoting his legendary catalog while partnering with him on the exciting projects he has in the works,” said Nir Seroussi, executive vice president at Interscope Capitol Labels Group.
“This partnership isn’t just a milestone—it’s a testament to our commitment to artistry, passion, and pushing boundaries,” added Jose Cedeño, SVP of Interscope Capitol Labels Group in Miami. “Ricardo Arjona’s music weaves deep connections between people, and together, we aim to amplify that reach,” he added.
Ricky Montgomery began rehearsing for his tour in late January. The singer/songwriter played shows across America before heading to Europe, Asia and Australia, returning to the U.S. in June. “It had been a long year, and I was also sick,” he says. That’s when he found out his label had dropped him.
“There was a disconnect as far as creative direction,” he explains. “The label didn’t really know what to do with me, and instead of listening to my ideas, they just tried to apply standard pop templates. Ed Sheeran was the one they thought would work.”
That “disconnect” is the subject of Montgomery’s upcoming single, a downcast acoustic ballad out October 24 called “Superfan.” He sings with a deflated quaver: “Team just got the numbers in/Said try it more like Ed Sheeran/But he’s not me, and I’m not him.”
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Being dropped hasn’t hurt Montgomery’s career, though. In fact, he’s now earning more streams — around 2 million streams a day across his catalog — than he was previously. “For better or worse, it’s a social media content game now,” says the 31-year-old singer, who has close to 2 million TikTok followers. “So if you’ve been investing your time into that, the odds are that you’re going to be totally fine if a label decides to drop you.”
Getting dropped is in vogue this year: Two of the biggest breakout artists of 2024, Chappell Roan and Shaboozey, were both cut by major labels before their recent explosive success. And more acts could soon join their ranks, because the major labels have been cutting costs by slashing staff — and dropping artists.
“Each time there have been major staff layoffs across the label systems, concurrently there were artists released from rosters,” says Leon Morabia, a partner at Mark Music & Media Law. “Some artists are really happy about it and relieved, and some artists are very upset. Their reaction ultimately depends on how much they depend on the record company to do what they do.”
Dropped acts lose access to an extended support team; plans for upcoming releases must be jettisoned or heavily reworked; tours can be scrapped. That said, Lulu Pantin, founder of loop legal, is adamant that “being dropped has no bearing on long-term success.” And this is probably more true than ever.
During a recent interview with Bloomberg, Sony Music CEO Rob Stringer pointed out that when he joined the music industry in 1985, labels had a lock on manufacturing, distribution and radio. “We had a lot more power,” he said. Today, in contrast, “the artists have at the very least equal power to us.”
That’s because they can make music cheaply, and promote it internationally, without ever leaving the house. “Artists have to be as good, if not better, at marketing as any professional marketer now,” Montgomery says. “They are, by default, the most experienced person in the room in marketing meetings.”
At the same time, the buttons that labels can push — to get radio play, appearances on award shows and late-night television, and prominent press placements — no longer guarantee real fans. As a result, Montgomery says, “Labels only want to focus on Tiktok or Reels or YouTube Shorts right now. I had three times as many meetings about TikTok strategy as I did about music. There’s no reason you can’t do that stuff on your own.”
Still, getting dropped can be jarring, a corporate version of a breakup. And like a breakup, disentangling takes a while, as it requires additional negotiation between the artist’s team and the label. “It’s not just, someone waves a magic wand and then you’re dropped,” says an A&R who left a major label job earlier this year.
This legal wrangling can be crucial for the next phase of an artist’s career. In a typical record deal, the label enjoys exclusive rights to any songs delivered during the contract period — even if they haven’t come out yet. For artists who are being shown the door, then, “the key point is who gets ownership of the unreleased music,” Pantin says.
Record companies are reluctant to give these rights up, since they helped fund the songs’ creation. To secure the return of unreleased music, artists may have to give the label a concession, either in the form of “an ‘override’ payment or a royalty on sales and streams,” Pantin adds.
If the label refuses to give up the rights to unreleased songs, artists have one other option. “I’ve called labels and asked them to waive the re-recording restriction,” says Tiffany Almy, founder of PKA Law. The re-recording restriction is in place to prevent an artist from putting out a competing version of a song the label already released, a tactic made famous by Taylor Swift with her Taylor’s Version album re-recordings. But the restriction serves no purpose if the label never put out the track in the first place. And if the artist succeeds in convincing the record company to nix that provision, they can then re-cut their music — on their own dime this time — for release.
Another point of negotiation when artists and labels are uncoupling: The act may be able to obtain some additional money, depending on the structure of their contract. “The deal could be worth $500,000, and $150,000 is given to the artist on signing and the rest is for recording,” the former A&R executive explains. “Then when you deliver the album, whatever’s left from the fund is supposed to go into the artist’s pocket.”
Attorneys try to prepare for these situations long before the label is even thinking about trimming rosters by including what’s known as “a pay-or-play provision” in the artist’s initial contract. (The initial deal negotiation period is when lawyers push for other protections as well: “I always try to build in caveats that the re-recording restriction doesn’t apply if the track doesn’t get released within a certain period of time,” Almy says.)
The pay-or-play clause ensures that, “If you get dropped in the middle of the contract period, you will be entitled to at least a portion of the remainder of the fund,” explains Oren Agman, an entertainment attorney. “Labels are now capping that, so they’ll give you maybe 30% or 40% of the balance. [But] if you have no pay-or-play provision, then you’re not getting anything other than the advance.” Jodie Shihadeh, a music lawyer, calls this provision “one of the last key points” when negotiating a record deal.
While the lawyers for both sides go back and forth after an act is dropped, the artist may be stuck twiddling their thumbs. “I’ve seen labels delay responses for months, extending the process and keeping artists in limbo,” Pantin says.
That limbo period matters because an artist technically can’t sign a new deal before getting out of the old agreement. Some do so anyway, figuring a label that dropped them isn’t likely to spend money suing them for breach of contract. “It can be a game of chicken,” the former A&R notes.
For an artist’s collaborators, it may be more than that — they don’t have the potential cushion of a pay-or-play clause. Many labels give a producer half their fee for a track up front, and fork over the rest only when that track comes out, Almy says. A dropped artist may mean a shelved track; for a producer, a shelved track represents lost income. “I’ve called the A&R at the label that dropped the artist and asked them to consider paying the producer for the work that they already did,” Almy says. Mixers are often in the same predicament.
Artists have it easier, because they can just start recording and releasing as they see fit. “I’ve seen some artists where it really helped that they got dropped, even though they didn’t want to be,” Shihadeh says.
Another recent post-drop success story is Gigi Perez, who parted ways with Interscope earlier this year. “I was stuck inside of a machine that didn’t work or make sense for me and I was unhappy,” she wrote in a lengthy message on Instagram on March 8. “I think a ton of artists were/are in this position as this new model of the music industry changes.”
She ended her post on an upbeat note: “Let’s go, bitches.” And in July, she released “Sailor Song,” a muscular folk track that works as well in an arena as it does around a campfire. It proved to be effective on TikTok as well: Users were soon soundtracking tens of thousands of videos with at least three different snippets of the single.
Streams of “Sailor Song” shot up. And on October 8th, Perez announced a new label home: Island Records.